Idaho’s Education Tax Credit- Not just for schools!
The primary focus of any charitable donation will always be that your money is going towards a good cause that positively enhances our community, but it never hurts to be aware of the benefits that it may provide come tax time! The state of Idaho offers an Educational Tax Credit for any cash donations made to qualified Idaho Educational entities of 50% of the amount donated, up to $500 per tax payer ($1,000 on a joint return). This means that an Idaho couple may receive a credit of up to $1,000 for $2,000 worth of donations during the year.
Many of our clients are aware that cash contributions made to Idaho schools and their respective athletic programs qualify for the credit (less the fair market value of anything received in return for their donation), but many are surprised to learn that there are several other entities they may donate to which are deemed to be qualified entities as well. In fact, some of the qualifying entities aren’t even mentioned in the instructions of the Idaho Form 39R where the credit is recorded, but remain eligible nonetheless. Some of the more popular organizations include the Boise Zoo, public libraries, public or private non-profit museums, public radio, as well as botanical gardens. Please be aware that this credit only applies to cash contributions made to educational entities, so donations of goods do not qualify.
So, if you are feeling charitable, keep in mind there are a number of educational options available throughout the state outside of schools and their sports teams (although the University of Idaho football program could always use your support. Go Vandals!).
If you have any questions please let us know.
Aaron Lavarias, CPA
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